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Replacement wheels for E60 550i 6sp Sport ? OEM?

Dealer diagnosed slow leaks on both rear tires as cracked wheels(!) and
quoted replacements at $600 EACH ! Seems to me, I could buy 4 decent
new wheels for $1200 and sell the front wheels to offset my costs.

You have lots of options

Joe, you can go several ways with this.

It looks like you have Style 124 wheels, which are fairly common on E60s. Here's some suggestions:
1. Look for someone who has a couple for sale. You may want to look here: http://forums.5series.net/forum/37-private-member-classifieds/ where there is a pretty vibrant E60 community.
2. This might be an opportunity to refresh your look. There are tons of OEM styles available as shown on this site: http://www.k-lach.net/
3. Get a second opinion from an independent tire dealer. Your BMW center may just be trying to boost their parts business.
4. If you really want to, you could find someone to fix the cracked rims, but personally, I'd explore one of the above options first.